IEA report: renewable energy provides 74% energy for bitcoin extraction

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Expected environmental effects of Bitcoin mining have long been used as an argument against cryptocurrencies. Reports like that published by nature Last year, climate change further fueled such fears. Since that report came out, the energy consumption of Bitcoin mining has increased considerably.

Recent findings show by the International Energy Agency (IEA) that Bitcoin mining will not cause our glaciers to melt and our planet to die – at least not alone.

In their 2018 report, Nature Climate Change claimed that the amount of power used to mine Bitcoin can only raise the temperature of the planet by 2 degrees Celsius. The report discussed in detail how Bitcoin mining can lead to an enormous amount of CO2 emissions.

However, the Nature Climate Change report must be taken with a pinch of salt. It has many irregularities and has been called out “Misleading” around the cryptocurrency community. The IEA report claims that much of the energy used in mining cryptocurrency (nearly 74%) is generated by renewable energy. This makes Bitcoin (BTC) trade mining greener than most other industries.

According to the IEA, cryptocurrency is only responsible for 0.03% to 0.06% of total CO2 emissions worldwide. To keep the costs of energy consumption as low as possible, the mining locations are selected by keeping several factors in mind. Some of them include a colder climate, low electricity rates and fast internet connection.

Bitcoin mining companies are usually located near renewable energy sources

China is currently the center of Bitcoin mining, with 60% to 70% of mining there. The areas in China where mining takes place are usually located near renewable energy sources such as hydropower. The same is the case with mining companies in other countries. Most crypto mining companies are looking to reduce costs as much as possible and renewable energy promotes this goal.

With apocalyptic claims such as the Bitcoin industry consuming more electricity than all of Ireland, there was some concern. However, according to the IEA, Bitcoin’s annual energy consumption varies from 20 TWh to 80 TWh, with an average of 45 TWH. This energy consumption is lower than the energy consumption of an electric car.

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